Implementing Logistics labels and E Invoice - GS1 · Implementing Logistics labels and E Invoice...
Transcript of Implementing Logistics labels and E Invoice - GS1 · Implementing Logistics labels and E Invoice...
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Sydney Newcastle Melbourne Brisbane Perth Adelaide Hobart Darwin
Implementing Logistics labels
and E InvoiceBuilding Traceability in Australian Healthcare
November 2010
Ged Halstead,
Chief Information Officer
Clifford Hallam Healthcare - CH2
Purpose
Introduction to CH2 SSCC Dispatch Advice E Invoice Benefits Challenges What can we expect to see in the future
Melbourne based
Chief Information Officer at CH2 (Past 4 Years)
Bachelor of Economics (Background in Accounting)
20 years working in ERP and E Commerce Project Management
Wide variety of industries including
Petro Chemical Healthcare Professional Services
Pharmaceutical Media
Food Processing Medical Device
Automotive Wholesaling
Inaugural and current Chairman of the Australasian Healthcare User Group (HUG) (Past 4 Years)
About me
About CH2
1938 VHA
Commencing in 1938 as the Victorian Healthcare Association
1997 Hospital Supplies Association is formed
1997 HSA1973 CHP
In 1973 Clifford Hallam Pharmaceuticals was established
About CH2
In 2005 HSA Merges with CHP
In 2008 CH2 Acquires Cottman
In 2010 CH2 Acquires Intouch Direct
Today CH2 2005 CH2 2008 and 2010
Today
CH2 is Australia’s largest Healthcare supplier. Offering a broad range of Pharmaceutical, Medical and Equipment suppliesto Hospitals, Primary Care and Allied Health
Today
Value Proposition
Extensive range of pharmaceutical, medical consumables and equipment
Local people and warehouses supported by a national network
CH2 regards ourselves as the One Stop Shop for the Healthcare industry
Your Partner Delivering Excellence in Healthcare Supply Solutions
CH2 Transaction Profile
More than 11,000 customers739 Public Hospitals289 Private Hospitals268 Day SurgeriesMedical Centers and GP’s
15,000 active SKU’s 320,000 lines delivered per month Pick, pack and ship over 3 million units per month Order fill rates consistently above 97%. DIFOT target is 95% Over 40,000 orders per month of which 70% customer orders via an EDI Channel Revenues to exceed $800m in 2010/11
SOS – Simple Ordering System Client based real time integrated and
standalone ordering Integrated to I Soft, Merlin, IBA and Fred
CH2 Direct Easy to use Web based Templates to enable quick ordering
B2B Full EDI suite via VAN and sFTP or Pharmx
Supplier enabled interconnections HEN patient registrations and ordering SCA TCMS interfaced
Email, Fax and Phone
Getting Connected
Our Journey
•E Messages•GTIN’s
Standards Culture within
•Productivity•Integration Capability
Prove benefits
•Partners wins•Innovate
Share the Value
Get Ready Get Set Get Going
The SSCC
An SSCC is a GS1 approved 18 digit barcode that appears on a despatch label.
When used in conjunction with an Advanced Shipping Notice (ASN) an SSCC can be used to identify the items on a shipment, on a pallet or in a carton.
The main benefit of SSCC’s is to speed up the receiving of goodsinto the receiving locations.
Two types in use at CH2 - Delivery Level and Pack Level
The SSCC at CH2What was needed to implement
• A willing customer• Collaboration with that customers software vendor:
– to develop the receiving scripts– to develop the E message for the dispatch advice with SSCC details
• Portable Radio Frequency (RF) label printers• A new script for picking on the RF Handheld devices• Training for pickers, dispatch and delivery staff • Training for the customer’s receiving staff
The SSCC at CH2
Picking – Standard Process 1.41 lines per minute
Picking – SSCC Process 1.13 lines per minute
Statistical Analysis
Dispatch Advice and E Invoice
• Dispatch Advice• The Dispatch Advice enables one
Shipper to provide information about the content of a shipment to one Receiver
• CH2 create either EANCOM or GS1XML Dispatch advices at invoice creation time (last pick of an order)
• Sent via a Value Added Network (VAN) , or SFTP
• Some companies are offering a Portal solution to ‘self serve’ iepickup from an FTP site and create your own Dispatch Advice and SSCC labels for your receiving departments
• E Invoice• Electronic Invoice• Replaces the printed copy • Details are Synchronized with the
Dispatch Advise• Some customers still require hard
copy delivery advices (sign on glass POD’s introduced to combat this)
• Permits the receiver to perform 3 way match (PO, Receipt and invoice match) without user intervention
Benefits of the Dispatch Advice and E Invoice
• Dispatch Advice• Enables faster receipting and Put
Away (estimated between 25 to 45%)
• Increased Item Availability visibility• Enables supplier performance
monitoring. DIFOT and SIFOT• Enables our customers to pinpoint
where a certain item in when urgent deliveries are involved
• E Invoice• Enables automated 3 way match
processes to be conducted without any user data input
• With quality data alignment enables the ‘perfect’ order from generation to settlement
• Reduction of AP (customer) and AR (supplier) overhead
Adopters in Australia
Dispatch Advice with SSCC labels – major Melbourne Public Hospital
E Invoice, Dispatch Advice and SSCC receipting - Major National Private hospital pharmacy departments
Lessons Learnt The internal process changes for SSCC labeling were easy and well adopted but the extra time and material used can create doubts about economic viability. Changing a customers behavior on ordering practices and patterns will take time 4 10 line orders is more cost effective than 40 single line orders
Software changes with partners take longer than if you are doing them yourself Partners do not enact change the same way
Will probably give rise to self service portals where suppliers place data on secured servers for recipients to pick up and create their own Dispatch Advices and E Invoices
Benefits for CH2 in adopting a standards based approach Inventory Accuracy Better than 97%
Pick accuracy 99.98%
Fill Rates close to 97%
99.98% Pricing accuracy
Reduction in working capital
Measure everything – in a position to share these metrics
Order consolidation and highly evolved transportation management
Lot Control now a reality in the wholesaler space
Playing an active role in participating with supply and demand partners to increase automation, data capture, visibility and standards adoption
GS1 Healthcare AustralasiaThemes for HUG A meetings over last two years
July 2010 Solution Providers Revisited at Kimberly Clark
April 2010 Traceability at NSW Health
Nov 2009 Regulatory
July 2009 Solution Providers
April 2009 Collaboration and E Commerce
Nov 2008 Data Synchronisation
July 2008 AIDC
Feb 2008 Working Groups at
Ahead Nov 2010 Asia Pacific International HUG in Singapore
Nov 2010 Implementation in Focus at Baxter Healthcare
April 2011 1st New Zealand HUG meeting
THANK YOU FOR YOUR TIME
For more information on CH2 please visit our website www.ch2.net.au
or our National Customer Service 1300 720 274